Question

Which internal control procedure addresses the idea that the likelihood of employee fraud or theft is reduced if collusion is required to accomplish it?

Answer 1

Answer:

The options for answering this question are the following:

A) Physical controls

B) Separation of duties

C) Use of prenumbered documents

D) Fidelity bonding

The correct answer is B) Separation of duties .

Explanation:

Separation of duties is a key concept of internal controls. Greater protection against fraud and errors must be balanced with the increasing cost and effort required.

Separation of duty, as a security principle, has as its primary objective the prevention of fraud and errors. This objective is achieved by disseminating the tasks and privileges associated with a specific business process among multiple users. This principle is demonstrated in the traditional example of separation of duty in the requirement of two signatures on a check.